The Hindu Business Line : ‘Well-crafted test match, rather than a 20-20 knock ’

“The Finance Minister has played a well-crafted test match innings, rather than a 20-20 knock…The removal of the fringe benefit tax is good news for the corporate sector. Several policy initiatives, including major tax reforms, have been unveiled. Overall, the Budget is an expenditure-driven one, given the need to provide a push to economic growth and consumption.”

Mr S.P. Hinduja,

Chairman, Hinduja Group

“The fiscal stimulus provided by the Government in the past few months has revived the economic growth and it plans to bring back the economy to the high GDP growth rate of nine per cent at the earliest.

The Budget has proposed higher allocation of funds for a number of development programmes such as the National Rural Employment Guarantee Scheme and extension of farmer debt waiver scheme, irrigation projects, etc. Such allocation will fulfil the expectations under the political mandate.

It has been decided to continue the stimuli like reduce service tax and Cenvat announced in the past few months. This will benefit the automobile, textile and medium and small industries and help to revive the growth.

While the direct tax proposals are revenue neutral, the indirect tax measures will result in some gain, but the resources generated are not adequate to meet the social and infra spend proposed. This has resulted in more than expected fiscal deficit.

The huge shortfall of resources for achieving nine per cent growth can be bridged only by making the business environment attractive for foreign/NRI investors and public-private-partnership.”

Mr Gautam Adani, Chairman, Adani Group:

The gradual ramp up of investment in infrastructure in excess of to nine per cent of GDP by 2014 indicates clear focus on infrastructure, flexibility to IIFCL and increased expenditure on NHAI are welcome steps. The exports too are getting push; this will help the domestic economy. With abolition of FBT and surcharge on IT, more money will be available in individual hands in these challenging times; this will catalyse savings, investments and spending; which in turn will help the economy.

Mr Pranay Bhatia, Partner, Economic Laws Practice:

The Wealth Tax Act has increased the chargeable threshold limit to Rs 30 lakh primarily to take care of inflationary effects. Amendment is also proposed to give power to the Central Government to request information from foreign countries and territories. This seems to emanate from the growing concern on tax evasion through parking of assets in tax havens.

Mr Rajji Rai, President, Travel Agents Association of India (TAAI):

“Budget 2009 is a major disappointment for the whole of travel industry. Despite repeated requests from various sections of the industry made to the Finance Minister, the industry has been ignored blatantly. No area of industry – travel, tourism (inbound & outbound), hospitality has been given any exemptions or allocations in the Budget.

Travel and tourism industry has been contributing major pie to the GDP of India and certain assertive measures are needed for the growth in this industry which is currently reeling under global recession.”

Mr Alok Vaish - CFO, Yatra.com:

With no announcements in and around the aviation or travel and tourism sector, the industry’s hopes and expectations of air travel becoming more affordable with the inclusion of ATF in the ‘declared goods’ segment and the removal of the service tax for selling flight tickets through OTAs, remains unrealised.

Mr Ankur Bhatia,

Executive Director, Bird Group

“The Finance Minister has tried to present a balanced budget during these difficult times. The Minister’s efforts to enhance the allocation for IIFCL to develop airports is positive, however, no framework has been created for allowing additional private participation, especially for regional airports which would have been important for growth in the aviation sector.

Overall, we have seen almost nothing for the travel, aviation and hospitality sector besides the increased allocation for the Commonwealth Games and removal of the fringe benefit tax. Infrastructure status for the travel and hospitality sector has not been considered by the Finance Minister, which is disappointing. Airlines have not been given any relief by way of ATF reduction, so that they can reduce their losses.”

Mr Ashok Goyal, Managing Director, BLR India Pvt Ltd:

As an industry we appreciate the reaffirmation of the beginning of the unified goods and services tax in 2010, by the Government. Abolishment of fringe benefit tax is welcomed.

The Budget places special thrust on infrastructure which is a welcome move, specially increase in allocation to the NHAI to 23 per cent. Providing investment-linked tax incentive to ‘cold chain’ warehouses will benefit the sector and is much appreciated. However, other problems such as upward revision of income-tax limit for cash payment also needed to be addressed.

Mr Kaushal Sampat, Chief Operating Officer – Dun & Bradstreet – India

“The short term proposals, which are focused on economic revival, are slightly above our expectations, and are welcome for the support they’d provide to an economy which is expected to get back on the revival path soon. Of course, these measures would have been even more welcome if a specific road map for containing the fiscal deficit had been laid out for the medium term.

While disinvestment could have found greater articulation, there seems to be a positive movement in that direction.”